The Situation
A 95-unit assisted living community in the Southeast. A grease fire in the commercial kitchen shut down food service and damaged the adjoining dining room and two resident wings.
The Problem
Repairs took 11 weeks. During that time, families moved residents out, and occupancy fell from 92% to 78%. The carrier calculated business income loss only for the repair period and offered $187,000. It treated the drop in residents as outside the claim.
What We Did
We read the policy, not the adjuster’s summary. It included an extended period of indemnity of 180 days, which covers lost income after repairs are finished until operations return to normal. We tied every move-out to the fire using discharge records and family correspondence. Then we showed the census recovery month by month against the community’s 24-month occupancy trend before the fire. We also documented added operating costs: catered meals, temporary staffing to escort residents, and relocation help. Those costs fell under the policy’s extra expense provision.
The Outcome
The carrier accepted the extended period of indemnity and the extra expense documentation. Final business income and extra expense settlement: $541,000. That is $354,000 more than the first offer.
Why It Matters
In senior living, census loss lasts well beyond the repair, and most claims get settled as if it doesn’t.
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